These are monthly charts, which allow us to dial out to the a very big picture
on the currencies, and by extension to the economies and markets they represent.
We note that the USD has had all kinds of time to mount the strong deflationary
rally that many have predicted. This failure must be very disappointing to
dollar bulls. But, just as the anti-dollar trade becomes a cacophony of "death
of the dollar" hyperbole, we will at least remain aware of the potential for
a major double bottom near 80.

The charts of other major currencies are provided to give frame of reference
to the dollar and its fate. The Euro and Swissy could be considered anti-dollars
in that the Euro appears to be the primary challenger to the world's reserve
currency and the Swiss Franc is commonly thought of as a note that represents
everything that the American debt note no longer does. Then we have the "commodity" or "resource" currencies,
the Australian and Canadian dollars. I do not see a whole lot of bullish there
and if I were a commodity bull I would be taking note and using caution. Finally,
the slap happy Japanese Yen, which despite official efforts to the contrary,
maintains a bullish stance to these eyes.

As always, we will watch for signs of hyperbole in the mass public mind set
and remain aware that the dollar's reign as a functional reserve currency may
not be over quite yet. We will also watch the Yen for a bullish turnaround,
which would have global liquidity implications. The story the currencies are
telling, at least to this writer's eyes is one where we get a strong anti-dollar
drum beat in the near-term rejuvenating the "inflation trade" even as "commodity" currencies
top out or continue to deteriorate, the dollar reverses off major lows, the
Yen rises and we enter a period of slowing economic growth and a contraction
in the global economy. It is either that or if the US Dollar breaks 80, we
are talking Banana Republic or worse, Wiemar.

Relevent ETF's impacted by future moves in world currencies are too many to
list here, but major market ETF's such as SPY (US), EWA (Australia), EWC (Canada),
EWJ (Japan), EWH (Hong Kong) and special niche ETF's like GLD (Gold Bullion),
SLV (Silver Bullion), USO (Crude Oil) and DBC (Commodities) hang in the balance.

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of interest.